Arik Air kicks as NAMA grounds aircraft over $2.5m debt

Arik Air has expressed displeasure over the grounding of its operations by the Minister of Aviation, Festus Keyamo, without prior notice.

The action, according to them, disregarded ongoing judicial processes with serious repercussions on their passengers, employees, and the Nigerian economy.

Arik, in a statement signed by its Managing Director, Captain Roy Ilegbodu, recalled that on February 26, 2016, a judgment was made in favour of Atlas Petroleum International Limited and Engineer Arthur Eze regarding $2.5 million debt, noting, however, that there was an ongoing case in the Federal High Court, where Asset Management Corporation of Nigeria (AMCON) was asserting its secured interest in Arik’s assets.

He said despite this, a writ of attachment was issued on July 18, 2024, targeting their aircraft, resulting in another originating motion by AMCON, and the High Court of the FCT on July 25, 2024, instructed all parties to maintain status quo.

Ilegbodu said they were perplexed by the grounding of their fleet, which he described as an overreach of the ongoing judicial processes and directives of the court, urging the authorities to lift the embargo placed on their fleets as they were committed to following the legal process, with full faith in the judiciary to resolve the matters fairly.

But the Special Adviser to the Minister of Aviation and Aerospace Development, Tunde Moshood, said the action was carried out by the Nigeria Airspace Management Agency (NAMA).

Moshood, in a statement signed by the management of NAMA, noted that on July 19, the enforcement department of the FCT High Court enforced an order made by the court regarding a debt of $2.5 million owed by Arik Airline to one Atlas Petroleum International Ltd. by attaching their aircraft, as copies of the Order, and that a certificate of judgment was also served on NAMA and the minister.

The statement said although they were aware that Arik Air had obtained an ex parte order stopping further execution of the order, they had not been formally served.

The statement encouraged the parties to the dispute to resolve their issues as quickly as possible so to enable Arik aircraft in question resume flight operations.

Meanwhile, the Federal Airport Authority of Nigeria (FAAN) has instructed all airport managers across the country to assist affected passengers as Arik Airlines works out plans to rebook and transfer passengers to other available flights.